Appointment letters are currently for three years but NEDs will be subject to annual re-election going forward. Appointments may be terminated by either party without notice. Fees for the non-executive directors are determined by the Board, based on a range of external information and advice set within the aggregate limits contained in the Articles of Association. The current aggregate limit for fees paid to NEDs is £1,500,000, increased from £1,000,000 at the 2010 AGM.
Appointment of new Chairman, John Stewart
John Stewart was appointed Chairman on 1 March 2010. His fee on appointment of £325,000 pa was the same as the outgoing Chairman, Sir Rob Margetts. At least 50% of the fee, after UK tax, must be delivered in Legal & General shares.
During 2010, the new Chairman, John Stewart, commenced a review of the members of the Board committees which includes consideration of whether the roles and responsibilities of the NEDs have broadened in scope and time commitment given the added emphasis being placed on corporate governance and risk oversight. This review will continue into 2011. Therefore, it was determined that currently there will be no change to fees and the current fees will continue to apply at present:
(Download XLS:)  |
|
NED fees |
|
|
Chairman |
£325,000 |
|---|---|
|
Chairman of the Remuneration Committee, Vice Chairman and Senior Independent Director |
£110,000 |
|
Chairman of the Audit Committee |
£90,000 |
|
All other non-executive directors |
£65,000 |
NEDs must use at least 50% of their fees, after UK tax, to buy Legal & General shares. Fees paid to non-executive directors are non-pensionable. In addition to their fees, directors are entitled to be reimbursed for expenses properly and reasonably incurred in respect of their office. No further remuneration is payable.
| (Download XLS:) |
|
NED |
Date of initial appointment |
Current letter of appointment start date |
Current letter of appointment end date |
|---|---|---|---|
|
Sir Rob Margetts |
June 1996 |
May 2008 |
Retired 1 March 2010 |
|
John Stewart |
January 2010 |
January 2010 |
AGM 2013 |
|
Sir David Walker |
March 2002 |
February 2008 |
AGM 2011 |
|
Henry Staunton |
May 2004 |
May 2010 |
AGM 2013 |
|
James Strachan |
December 2003 |
December 2009 |
AGM 2013 |
|
Rudy Markham |
October 2006 |
October 2009 |
AGM 2013 |
|
Dr Ronaldo Schmitz |
October 2000 |
September 2006 |
Retired 26 May 2010 |
|
Frances Heaton |
July 2001 |
May 2010 |
Retired 2 November 2010 |
|
Dame Clara Furse |
June 2009 |
June 2009 |
May 2012 |
|
Nick Prettejohn |
November 2010 |
November 2010 |
November 2013 |
Going forward it is proposed that all directors stand for re-election annually. The Board will therefore be subject to annual re-election at the 2011 AGM in accordance with requirements under the UK Corporate Governance Code except Sir David Walker who will step down after the AGM having completed nine years on the Board.
